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Factors That Reduce Savings In Nigeria (1980-2010)
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1.2 STATEMENT OF THE PROBLEM
In
Nigeria, there is lasting need of further efforts especially in
mobilizing small savings in both urban and rural areas, and the process
of financial intermediation itself, knowing fully well the saving
culture in Nigeria is very poor relative to other developing economics
(Uremadu, 2006). In this respect, Commercial banks in performing their
roles, was found to have potential scope and prospects for mobilizing
financial resource and allocating them to investment. But given the
problems inherent in the formal sector, the informal savings
associations, if properly developed would not only facilitate the
financing of economics development but would also contribute to the
development of incomes, and that necessitates the need to put in place a
coherent economics policy that will be capable of providing the much
needed enabling environment and also there is an urgent need to
encourage Nigerians to change their current attitude towards savings,
thereby placing the right saving culture by institutions and regulatory
agents who influence the decisions of households, firms and government.
As
pointed out earlier, since national policy is it macroeconomic or
microcosmic generates variables which could influence the propensity of
economics and financial actors to save. This research work could attempt
to examine from policy perspectives, the magnitude and direction of
such variables as: interest rate, income, growth, urbanization, foreign
(aid) sector, fiscal policy etc, on savings in Nigeria.
Therefore, this research question will try and answer the following:
1. What are the factors that reduce savings in Nigeria?
2. What impact does factors reducing saving have on aggregate savings in Nigeria?
1.3 OBJECTIVES OF THE STUDY: In the light of the above problems, the objectives of this research work include:-
* To ascertain those factors that reduces savings in Nigeria.
To determine the impact of the factors that reduces saving on aggregate savings in Nigeria.
1.4 STATEMENT OF THE HYPOTHESIS
The hypotheses to be tested in this research work are:
a. Ho; the factors that reduce saving has no significant impact on aggregate savings in Nigeria.
b. H1; the factors that reduces saving has a significant impact on aggregate savings in Nigeria.
1.5 SIGNIFICANCE OF THE STUDY
This
research work will be of immense help to [policy formulators
particularly those involved in the development of the Nigerian economic
agenda. It will help them in choosing the appropriate policy in the
macroeconomic policy management, particularly those affecting saving in
Nigeria. Also, through the findings and suggestions of this research
project work, a greater awareness will be generated in the financial
arena or sectors so as to appreciate the effects being carried out by
the federal; government of Nigeria through the Central Bank of Nigeria
and Federal Ministry of Financial in improving the policies affecting
positive saving in recent years. Finally, this study will assists in a
modest way to increasing student‟s knowledge on the practical and real-
life situation of the theories they learn in the classroom.
1.6 SCOPE AND LIMITATIONS OF STUDY
The scope of this study is to estimate and evaluate the factors that reduce savings in Nigeria (1980-2010).
The
Limitations are constrained to lack of fund, human error and limited
time frame, which imposed difficulties when serious attempt to effect a
general in – depth towards the study of the factors that reduce savings
in Nigeria.
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ABSRACT - [ Total Page(s): 1 ]This study investigates the core leading factors that reduce savings in Nigeria between 1980 -2010 using ordinary Least Square (OLS) econometric framework, which will enable us proffer solutions for the improvement of savings in the economy, which is also an important component for economic development in any country. Base on data collected, it is discovered that savings output in Nigeria during the period was unsatisfactory but was later discovered as a necessary factor for economic development ... Continue reading---
